According to the G20 risk regulatory agencies, data privacy is one of the main legal challenges in cross-border cooperative regulation of cryptocurrencies such as Bitcoin and stablecoins.
The Financial Stability Board (FSB), a global financial authority funded by the Bank for International Settlements (BIS), pointed out that there are ongoing gaps in cryptocurrency market regulation among governments worldwide.
"This inconsistency brings challenges such as regulatory arbitrage, data gaps, and market fragmentation," the FSB wrote in a 107-page peer-reviewed report released on Thursday.
In key issues of cross-border cooperation, regulators emphasized the divergence of supervisory responsibilities among multiple agencies within each jurisdiction, different regulatory approaches, particularly regarding privacy laws.
According to the FSB, data confidentiality issues are often a concern when identifying potential systemic risks and effectively supervising cross-border crypto asset activities.
"Confidentiality or data privacy laws may pose significant obstacles to cooperation," the regulators stated in the report, adding that some jurisdictions restrict local companies' ability to share data with regulators in other jurisdictions.
Another issue is that some participants are also reluctant to share sensitive information due to concerns about confidentiality breaches or a lack of guaranteed reciprocity.
"These concerns lead to delays in making cooperation requests, and in some cases, may completely prohibit or hinder participation in cooperative arrangements," the FSB wrote, adding:
As authorities view data privacy as a key blind spot in enforcing effective global crypto regulation, it remains unclear what solutions they may propose.
The FSB emphasized that data privacy is a key challenge in addressing financial stability risks, while the cryptocurrency community has long regarded it as a fundamental human right. This does not mean that cryptocurrency transactions are completely untraceable, but the FSB noted that cryptocurrency data providers often lack accuracy, consistency, and comprehensiveness.
The FSB stated: "Regulatory data sources remain limited, and regulators therefore rely heavily on commercial data providers, investigations, and other incomplete or fragmented data sources."
The FSB pointed out similar data provision issues nearly four years ago, but progress in improving the quality of cryptocurrency data has been limited to date.
Cointelegraph reached out to the FSB for solutions to the data challenges but had not received a response by the time of publication.
Related: Ethereum attracts over 16,000 new developers in 9 months
Original article: “G20 Risk Regulatory Agencies: Privacy Regulations Hinder Cross-Border Cryptocurrency Regulation”
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
